I'm trying to purchase a duplex in NSW zoned as 2b residential. I expect it could be purchased for around 840K and I have around 110K to put towards the deposit and stamp duty (34K). There are two units on the one title. Unit 1 has 5 bedrooms and unit 2 has 6 bedrooms.
My problem is that it is currently let out as a guest house with 11 rooms, and so the banks I have approached won't lend at 95% LVR as they deem it to be a commercial property. I don't understand why the banks won't view the property as residential as it is not actually a registered boarding house. And the two units are very seporate with each thier own entrance, gas and water meteres, kitchen and bathroom.
Any ideas on where to go to look for finance approval?
If I was you I would make enquiries with a mortgage broker
see for some examples of possible banks that lend commercial
http://www.ingdirect.com.au/home_loans/home_loan_products/commercial_loans/priority_commercial_mortgages.htm
http://www.bankwest.com.au/Business/Business_Loans/Fixed_Interest_Commercial_Loan/index.aspx
http://www.membersequitybank.com.au/business/business_finance_solutions/commercial_loan.htmlA mortgage broker might be a way to have access to many lenders that the broker matches your requirement with the banks requirements.
As some of the above mention links do not specify LVR amount.There are Mortgage brokers who regularly post in this forum go to the finance section and check out their postings.
see
https://www.propertyinvesting.com/forums/getting-technical/finance/4326254
https://www.propertyinvesting.com/forums/getting-technical/finance/4326919
https://www.propertyinvesting.com/forums/getting-technical/finance/4326895
https://www.propertyinvesting.com/forums/getting-technical/finance/4326813The banks usually deem multiple dwellings over a certain number as commercial I think the number may be over 4 dwellings but I can't remember and it may vary from bank to bank.
see this forum posting below
https://www.propertyinvesting.com/forums/property-investing/help-needed/20407?highlight=commercial%2Cloan%2Cmultiple%2CdwellingAphex
The useage of the property maybe 1 consideration but secondly the overall LVR.
There are not that many lenders full stop who will go to 95% on a purchase price of $840K.
If the rest of the deal is sound and the property is zoned residential i can think of a couple of lenders who would go to 90% LVR.
Who have you approached ?
Richard Taylor | Australia's leading private lender
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